Novatek, CNPC Cooperate on Yamal LNG

Russia’s Novatek and China’s CNPC clinched a deal whereby CNPC purchased a 20% equity share in the Yamal LNG project. 

“CNPC’s entrance in Yamal LNG is an important milestone for the project. We are pleased to welcome a new, strong partner who will contribute its capabilities and resources to the successful implementation of the Project,” said Leonid Mikhelson.

According to a note released by the company, the transfer is subject to necessary regulatory approvals. It is expected to be completed by December 2013. After the transfer, Novatek will retain 60% of the Yamal LNG, with CNPC and Total SA holding 20% each.

The agreement was signed in the presence of the President of Russian Federation Vladimir Putin and the Chairman of People’s Republic of China Xi Jinping.

On Wednesday, Novatek won a 283.9 billion-ruble ($8.49 billion) contract to supply E.ON Russia’s Surgut-2 plant from 2014 to 2027.